Defendant Swannell Sold His Elliott Wave Analyzer Software Programs Through
His Website

WASHINGTON D.C. – The Commodity Futures Trading Commission (CFTC) announced
today the recent filing of a
two-count civil injunctive
complaint in federal district court in Los Angeles against Richard Swannell
of Australia, charging that Swannell, who sells commodity trading software online (see
CFTC News Release 4442-00, September 7, 2000),
violated a September 6, 2000, Commission
consent order to which he had voluntarily
agreed.

That consent order required Swannell to refrain from presenting hypothetical trading
results without warning of the inherent limitations of hypothetical trading, and to
clearly identify when trading results were based wholly or partially on simulated or
hypothetical trading. The order also prohibited Swannell from making any
representations of financial benefits associated with any commodity futures or options
trading system without first disclosing “prominently and conspicuously, that
futures trading involves high risk with the potential for substantial losses.”

Specifically, the complaint charges, among other things, that Swannell violated the
order by using hypothetical trading results to sell his Elliott Wave
Analyzer software programs and seminars without disclosing that the trading
results were not the result of actual trading. Within the past six months,
Swannell's website has included statements that the software is "84.9%
accurate- Statistically Proven" and that "the Elliott Wave Analyzer 3 can
accurately forecast market movement," according to the complaint. The complaint further
alleges that these statements are based upon hypothetical trading but that Swannell failed
to disclose this fact and failed to prominently display a warning regarding the limitations
of simulated or hypothetical trading results as required by CFTC regulations. In addition,
the complaint charges that Swannell did not prominently display a warning of the risks of
futures trading, as required by the order.

In its continuing litigation against Swannell, the CFTC is seeking a permanent
injunction, repayment of ill-gotten gains, and civil monetary penalties.

The CFTC appreciates the assistance of the Australian Securities & Investments
Commission.

The following staff of the CFTC Division of Enforcement were responsible for this
action: Robert Hildum, Tim Mulreany, Ken Koh, Jacqueline Hamra Mesa, and Paul Hayeck.

For more information on Commodity Trading Systems, see the CFTC’s
Consumer Advisory-Alert of May 1, 2000:
Beware of Websites Selling Commodity Trading Systems that Guarantee High Profits
with Minimal Risks.